What is the estimated range for insurance costs for an Engel & Volkers start-up real estate brokerage?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
ributions described in Item 6, you will need to advertise locally to help increase name recognition in your market.
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- You will need to purchase and maintain in effect at all times during the term of the Franchise Agreement a policy or policies of insurance, naming us as an additional insured, with public liability limits of no less than the following amounts: professional liability (real estate errors and omissions) – $2,000,000 each occurrence, bodily injury - $2,000,000 each person; $2,000,000 each accident, and property damage - $2,000,000 each accident. We also recommend a cyber/data breach insurance. You must also maintain workers' compensation and other liability insurance as required by sta
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 30–38)
What This Means (2025 FDD)
Based on the 2025 Engel & Volkers Franchise Disclosure Document, while the document does not provide a specific estimated range for insurance costs, it does outline the required insurance coverage. Engel & Volkers franchisees must secure and maintain insurance policies throughout the term of the Franchise Agreement, with Engel & Volkers named as an additional insured.
The required minimum public liability limits are $2,000,000 per occurrence for professional liability (real estate errors and omissions), $2,000,000 per person for bodily injury, $2,000,000 per accident for bodily injury, and $2,000,000 per accident for property damage. In addition to these requirements, Engel & Volkers also recommends that franchisees obtain cyber/data breach insurance. Franchisees are also obligated to maintain workers' compensation and other liability insurance as mandated by state law.
The FDD stipulates that Engel & Volkers retains the right to periodically modify the types and amounts of insurance coverage that franchisees must maintain. Since the FDD does not provide an estimated cost range, prospective franchisees should contact current franchisees to get an idea of what they pay for insurance coverage, and contact insurance brokers to get quotes based on the required coverage limits.
Given the potentially high costs associated with securing the mandated levels of insurance, it is essential for prospective Engel & Volkers franchisees to factor these expenses into their financial projections and seek professional advice to ensure they obtain adequate and cost-effective coverage.